Gleneagles Hotel saw turnover rise to more than a £1 million a week last year as the luxury resort benefitted from continuing investment in new facilities.
Turnover at the Perthshire hotel rose by 8% to £55.3 million in 2018 from £51.2 million the previous year. But although operating profits at the five-star venue also increased by 40% to £3.5 million from £2.5 million the previous year, the impact of finance costs and one-off losses on disposal of assets saw pre-tax profits slump to £55,000 from £505,000.
Dividends of £4 million were paid to its owners Ennismore, down from the £63 million paid the previous year.
New manager at Gleneagles’ revamped restaurant
Since Ennismore added Gleneagles to its collection of boutique hotels in 2015, it has embarked on a multi-million refurbishment programme and the firm said the development and performance of the business in 2018 were in line with its expectations.
“The current business continues to see positive trading conditions,” said finance director David Kemp.
“Our multi-million pound refurbishment programme is continuing with the opening of our intimate new meeting and event space Ochil House, continued refurbishment of our food and beverage offering at the Dormy Clubhouse, redevelopment of our golf shop retail offering and further refurbishment of the hotel’s room stock.
“Alongside other current developments, including renovation of our flagship Strathearn restaurant, these renovations are set to further enhance Gleneagles’ position as a ‘glorious playground’ at the heart of the Scottish countryside.”
The firm cited the main risk facing the company’s future trading as the potential of downturns in the European and American economies that could lead to reduced occupancy from corporate and leisure clients.
Gleneagles to reopen its famous Strathearn restaurant with new look
Staff numbers rose to 1,015 from 938 the previous year. The total pay package of the highest paid director rose to £442,000, up from £359,000 the previous year.
Interest payments on loans jumped to £2.1 million from £1.4million. In the previous year’s accounts it was revealed that the business had taken out a £66 million term loan to help fund the improvement programme. The latest accounts show total long term debts at the business have increased to £75.5 million from £71.4million.
The hotel and golf resort was sold to Ennismore by spirits giant Diageo which had owned it for 31 years. The deal was thought to be valued at around £150 million.
Earlier this month the 232-bedroom hotel reopened its The Strathearn restaurant after a major revamp.
